BOE: May Mortgage Approvals Pick Up; Interst Rates Rise>

-BOE UK May house purchase approvals 64,526 vs 62,941 April

     LONDON (MNI) - Bank of England data showed a rise in mortgage 

approvals in May, with the average interest rate on new loans heading 

higher. 

     In May there were 64,526 mortgage approvals, up from 62,941 in 

April and the highest outturn since January. New borrowing, however, 

became more expensive and the interest rates offered on loans were 

higher still. 

     The BOE Quoted Rates series, which shows 'shop window' interest 

rates on mortgages, showed that the average rate on a two year 75% 

loan-to-value (LTV) mortgage was 1.74% in May, up from 1.70% in April 

and the highest since June 2016. 

     Similarly, the rate on a 2 year 85% LTV rose to 2.06%, the highest 

since May 2016. 

     Quoted rates are the leading indicator while effective rates on new 

mortgages, that is mortgages taken out, rose to 2.11% in May, the 

highest since March 2017. 

     Net consumer credit, a measure of unsecured credit, rose to 

stg1.405 billion in May, down from stg1.764 billion in April. 

-London newsroom: e-mail: david.robinson@marketnews.com  

[TOPICS: M$B$$$,M$$BE$,MABDS$]